The new optional tax deduction

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canada goose coats Taking the home office tax deduction has just become easier for individuals whose home is their primary place of business. That’s because the IRS has just announced a simplified option homebased workers can use to determine their deductions for the business use of their home.The new optional tax deduction, which goes into effect for the 2013 tax year (the return that gets filed by April, 2014) allows home businesses to deduct $5 per square foot for their home office up to a maximum of 300 square feet ($1500). The option provides taxpayers with easier way to calculate and claim the home office deduction than completing the current a 43 line form (Form 8829.)Homeowners using the new option cannot depreciate the portion of their home used in a trade or business, however, they can claim allowable mortgage interest, real estate taxes and casualty losses on the home as itemized deductions on Schedule A. canada goose coats

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